Proposed bill would keep rewards points from expiring

Ontarians hoping to hop on a jet plane on points may finally have some protection.

A private member’s bill that aims to stop rewards points from expiring passed its second reading at Queen’s Park on Thursday. A committee will debate the proposed changes next.

The Sun spoke with Consumers’ Association of Canada president Bruce Cran and Beaches-East York MPP Arthur Potts, who put forth the bill.

Q: Why did you believe this was an important amendment?

POTTS: “I had a member of my family concerned about losing points and flagged this. I started talking to constituents about it and it wasn’t very fair. I remember we had that discussion about gift cards years ago and I wasn’t part of the government then. I explored it with the minister and (suggested) we make a private member’s bill.”

Q: Were you getting a lot of complaints?

CRAN: “I get calls from people who have been saving for years, and who have two kids, and just as they’re about to get there for a holiday, these companies do something to disrupt the value of your points — either by cancelling them completely or by changing the number of points you may need for an award.”

Q: Which companies stopped or interrupted their points programs?

CRAN: “Air Miles has done this over the years and gotten away with it. Aeroplan has done similar things. We need clarity and airlines and people who run these points companies to be accountable to supply what they’re going to supply. This legislation is very much needed and for whatever happens, the consumer always tends to end up on the bottom. We need national legislation.”

Q: Any recourse for consumers who lost points pre-Oct. 1?

POTTS: “We’re saying that anything that was there as of Oct. 1, can’t be expired, so it’s retroactive. So it protects all points going back (to Oct. 1). Companies saying they’ll expire the points, they can do that, but then will have to credit them back. What we’re suggesting is they just not do it. But before Oct. 1, 2016, no, (the credits) can’t go back that far. This will cover into the future, but not into the past.”

ABOUT THE PROPOSED LEGISLATION

A new section would be added that prohibits consumer agreements from allowing the expiry of rewards points.

Rewards points are allowed to expire when the consumer agreement is terminated, unless the agreement provides otherwise.

Any reward points that expired on or after Oct. 1, 2016, would be credited back to the consumer on the day the section comes into force.

On average, consumers receive less than a 2% return on participation in loyalty and rewards programs.